paragon with significant earnings growth in the first quarter of 2007

paragon AG / Quarter Results Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- · Net income for the quarter increases by 26.1% · EBITDA margin rises to 19.2% · Sales increase by 5.9% as planned Delbrück, May 9, 2007. paragon AG has confirmed its forecasts for fiscal 2007: The first signs of a focussing on earnings power – as announced by the Company at the end of 2006 – are already visible after the end of the first quarter. Net income of the direct supplier to the automotive industry increased by 26.1% in the first quarter to €0.6 million (Q1 2006: €0.4 million). As planned, Group sales increased by 5.9% over the prior-year period to €25.6 million in the first quarter of 2007 (Q1 2006: €24.2 million). Over the course of the year, earnings will continue to increase at a greater rate than sales. Group sales increased by €1.4 million in the first quarter of the year in comparison with the prior-year period. Sales in the core Automotive division increased by 2.5% to €20.2 million (Q1 2006: €19.7 million) despite the fact that the first quarter is traditionally the weakest one of the year. The Electronic Solutions division surpassed sales projections: Based on follow-up orders from new customers acquired in 2006, paragon generated sales of €5.4 million (Q1 2006: €4.5 million) in this segment (including Building Technology), an increase of 20.9% over the prior-year period. During the period under review, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 18.8% to €4.9 million (Q1 2006: €4.4 million). The EBITDA margin improved accordingly from 18.2% to 19.2%. EBIT performed even better with an increase of 22.0% to €2.2 million (Q1 2006: €1.8 million). This resulted in an EBIT margin of 8.5% (Q1 2006: 7.4%). Net income for the quarter rose by 26.1% from €448 thousand to €565 thousand. This corresponds to earnings per share of €0.14 (Q1 2006: €0.11). The good start to fiscal 2007 confirms the forecasts for the year as a whole. The company plans to increase sales by 5% to 10% over the previous year (2006: €110.8 million). The efficiency increases introduced will lead to earnings significantly outperforming sales in full-year 2007 as well. The quarterly report can be downloaded at http://www.paragon-online.de under the section 'Investor Relations'. paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +49 (0) 52 50 - 97 62 -0 Fax: +49 (0) 52 50 - 97 62 -60 Internet: www.paragon-online.de E-Mail: info@paragon-online.de Investor Relations Haubrok Investor Relations GmbH Fabian Lorenz Tel.: +49 (0) 2 11- 3 01 26 -0 Fax: +49 (0) 2 11 - 3 01 26 -172 E-Mail: f.lorenz@haubrok.de DGAP 09.05.2007 ---------------------------------------------------------------------- Language: English Issuer: paragon AG Schwalbenweg 29 33129 Delbrück Deutschland Phone: +49 (0)5250 97 62 - 0 Fax: +49 (0)5250 97 62 - 60 E-mail: investor@paragon-online.de www: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------